- Shareholders of First Trust ETFs (FIXD, UCON) approve new sub-advisory agreement.
- Smith Capital Investors appointed as sub-advisor, replacing TCW Investment Management.
- "Manager of Managers" structure allows flexibility in sub-advisory agreements without shareholder approval.
First Trust Advisors L.P. has announced that shareholders of the First Trust Smith Opportunistic Fixed Income ETF (FIXD, Financial) and First Trust Smith Unconstrained Bond ETF (UCON) have approved a new investment sub-advisory agreement. Smith Capital Investors, LLC will now serve as the sub-advisor, following the termination of the previous agreement with TCW Investment Management Company LLC.
The approval includes the adoption of a "Manager of Managers" structure, providing First Trust the flexibility to enter into and amend investment sub-advisory agreements with both affiliated and unaffiliated sub-advisors without further shareholder approval. This structure enables disclosure of investment advisory and sub-advisory fees in aggregate form.
Smith Capital Investors, based in Denver, Colorado, takes on the responsibility for selecting and monitoring the securities in each fund's investment portfolio. As of July 2025, Smith Capital manages approximately $12 billion. First Trust Advisors L.P. continues to act as the overarching investment advisor, with collective assets under management totaling approximately $268 billion.
